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re: What would the economic impact be if all student loans were forgiven?
Posted on 11/13/20 at 11:40 am to drdoct
Posted on 11/13/20 at 11:40 am to drdoct
quote:
It's criminal to give 18yr olds the ability to get into debt that will take them 20 years to pay off. But damn near anything the govt does for wealth distribution is criminal anyway. But the Karens of the world will tell you it's perfectly acceptable to go $200,000 in debt just to end up with some liberal arts degree.
If you force these universities to be on the hook for 50-70% of these loans, you'd see prices and waste plummet overnight.
0
Posted on 11/13/20 at 11:40 am to kingbob
quote:Most student loans are federally guaranteed. So if the government forgives the loans, the government is writing checks to the banks for the loan balances. Lenders won't collapse over it. But its still terrible policy that's going to have to be paid for with tax increases on those of us who had jobs in college and paid for our expenses instead of partying all the time and using student loans as a means to live off of for 4+ years.
but every dollar owed is a dollar on a lender’s balance sheet. If that balance is wiped clean, those lenders will likely collapse
Posted on 11/13/20 at 11:42 am to arseinclarse
quote:
Old Testament, real wrath of God type stuff. Fire and brimstone coming down from the skies! Rivers and seas boiling! Forty years of darkness! Earthquakes, volcanoes... The dead rising from the grave! Human sacrifice, dogs and cats living together... mass hysteria!
Posted on 11/13/20 at 11:42 am to Bluefin
quote:
Starbucks would collapse because all their workers would be able to pursue their dreams of an interpretive dance about the atrocities of American colonialism.
Someone doesn’t know jack shite about Starbucks and how beneficial their corporate policies actually are.
Posted on 11/13/20 at 11:44 am to Joehat
quote:
The people who already paid them off would have a fit, and demand tax breaks on those amounts.
Denied.
Now back to work, comrade.
Posted on 11/13/20 at 11:44 am to The Midnight Rider
quote:
Someone doesn’t know jack shite about Starbucks and how beneficial their corporate policies actually are.
You obviously don't understand the importance of interpretive dance, amigo
Posted on 11/13/20 at 11:44 am to TravisTigerTravis
quote:
Massive inflation
would be ~1/20 of the injected capital we just printed for the stimulus
the real issue is it doesn’t address the problem, just the symptom. The problem is that banks have no risk when giving out student loans because they are insured by the federal government; and colleges know this and take advantage by upping tuition that is paid for by the banks.
Stop the government insurance of the loans, and this crisis will drop in scale dramatically.
It’s kind of like anything the government touches turns to arse.
Posted on 11/13/20 at 11:49 am to Joehat
quote:
The people who already paid them off would have a fit, and demand tax breaks on those amounts
More than reasonable considering taxes are what’s going to have to pay for the forgiven loans.
Nothing is free.
Posted on 11/13/20 at 11:50 am to WaydownSouth
quote:
But wouldn’t be upset at having $1200 a month to invest in the economy instead of going to the guvment
I'd rather invest $1200 a month in the economy rather than give it to the government so that they could pay off other peoples loans.
Posted on 11/13/20 at 11:51 am to REG861
quote:
Pretty spot on. The boomers who paid 1200 a year for a general studies degree in the LBJ administration won’t like it. But it’s true. College should not be free but it should be more affordable, especially now when A more specialized job market virtually demands graduate degrees.Starting with predatory interest rates.
College is expensive because higher ed, big banks and government are all in bed together.
Higher ed knows that any idiot out there can get a federal student loan, so higher ed therefore charges more money for tuition. It's a never ending cycle.
Getting the government out of the student loan business would drop tuition prices overnight
Posted on 11/13/20 at 11:52 am to REG861
quote:
The boomers who paid 1200 a year for a general studies degree in the LBJ administration won’t like it.
Ohh..angry little gnome..
Posted on 11/13/20 at 11:52 am to Stiles
quote:
More than reasonable considering taxes are what’s going to have to pay for the forgiven loans.
Nothing is free.
Exactly. Not only did I have to pay off loans on a massively overpriced product, but I will now have to pay off someone else's education that will be 10x more inflated than what I paid now that there will be essentially an open floodgate on spending at these universities
Posted on 11/13/20 at 11:53 am to Ross
quote:Which is why the banks will let someone run up $100K+ in student loans while majoring in some bullshite degree field that doesn't have any more earning potential than just a high school diploma. The bank wouldn't loan me $100K to buy a Tacoma or $500K to buy a house that was only worth $200K. Same logic should apply to student loans but won't until the government stops guaranteeing the loans.
The problem is that banks have no risk when giving out student loans because they are insured by the federal government
Posted on 11/13/20 at 11:54 am to Tiger Prawn
quote:
Lenders won't collapse over it
People under the age of 50 will be saddled with tax increases and rconomic hardships in the future.
Nothing is free. Pay now or later.
Posted on 11/13/20 at 11:58 am to LoneStar23
It’s not gonna happen, I’d imagine the responsible people who worked hard to already pay theirs off would riot
Posted on 11/13/20 at 12:10 pm to tigergirl10
Slow Joe just ushered in the final leg of American idiocrazy
Posted on 11/13/20 at 12:26 pm to LoneStar23
The government bailed out the banks in '08, why won't it bail out its citizens?
Basically, the economic impact would be that citizens with federal student loans will have more money in their pockets. That means more money to invest, purchase, and stimulate the economy.
I think it would be a good thing, honestly. And I, fortunately, didn't have any student debt.
Basically, the economic impact would be that citizens with federal student loans will have more money in their pockets. That means more money to invest, purchase, and stimulate the economy.
I think it would be a good thing, honestly. And I, fortunately, didn't have any student debt.
Posted on 11/13/20 at 12:29 pm to LoneStar23
Damn glad never had one of those
Posted on 11/13/20 at 12:29 pm to WaydownSouth
quote:
Not sure. But wouldn’t be upset at having $1200 a month to invest in the economy instead of going to the guvment
That’s a good bit baw
Lol
Posted on 11/13/20 at 12:42 pm to GentleJackJones
quote:
The government bailed out the banks in '08, why won't it bail out its citizens?
This post was edited on 11/13/20 at 12:43 pm
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